Tate & Lyle Shares Drop: Faces Market Slowdown Despite CP Kelco Synergies

Tate & Lyle PLC (LON: TATE) released a pre-close statement on Wednesday indicating a slowdown in market demand is impacting its near-term financial performance, overshadowing the anticipated benefits from its CP Kelco combination.

The announcement precedes the release of the company's results for the six months ending September 30, 2025, scheduled for November 6, 2025.

Tate & Lyle shares plunged over 9% following the report.

The company anticipates a 3% to 4% decrease in revenue for the first half, compared to pro forma comparatives in constant currency.

The top-line softness, combined with ongoing growth investments and a weighting of cost synergies towards the second half, is expected to result in a high-single-digit percentage decrease in EBITDA for the same period.

Despite the near-term headwinds, Tate & Lyle expects performance to improve as we move into the fourth quarter. It is accelerating actions to drive top-line growth, driven by actions being taken to drive top-line growth and the increasing benefits from the CP Kelco combination.

For the year ending 31 March 2026, TATE now expects revenue and EBITDA to decline by low-single digit percent compared to the prior year.

Headline Numbers:

• Revenue: Expected to be 3%-4% lower in H1 compared to pro forma comparatives (constant currency).
• EBITDA: Anticipated to be high-single-digit percent lower in H1.
• Full Year Outlook: Revenue and EBITDA expected to decline by low-single-digit percent compared to the prior year (constant currency).

Nick Hampton, Chief Executive, stated, “We continue to make good progress delivering the benefits of the CP Kelco combination…The strong interest our combined offering and reformulation expertise is generating with customers demonstrates the strategic logic of bringing Tate & Lyle and CP Kelco together, and reinforces our confidence in the growth potential of the combined business.”